Problems continue to mount for We Company, as Softbank reportedly requests to raise IPO – TechCrunch

The problems for We Company and its main business WeWork increase while Financial Times reports that the company's main support, Softbank, is pushing for the company to put its troubled public offering on hold. [19659002] Citing sources familiar with the company and its main investor, Financial Times said that the cool reception We Company has received from public market investors.

The company needs to obtain at least $ 3 billion in public offerings to trigger a $ 6 billion debt financing from the bankers themselves who filed the stock exchange listing. If it fails to cross that $ 3 billion threshold and does not have access to that debt, it will be an important barrier to We Company's global expansion plans. And these plans are crucial to the company's success, since it is the growth story that the company sells to public market investors.

Over the weekend, the Wall Street Journal reported that the company thought to reduce the amount it would seek in a public offer under the $ 20 billion figure previously reported.

The We Company had recently raised money valued at more than $ 47 billion and the constant reductions in the company's value could create a self-fulfilling prophecy that would push the stock price further down if the company were to proceed with a public offering.

The company has even taken steps to roll back some of the more fraudulent financial schemes that caused investors to look at the company's questions. It left a woman to the board after much public outcry over the board's composition and wound up a deal worth nearly $ 6 million that the company had signed with CEO Adam Neumann on licensing rights to the "We" brand.

Nevertheless, Neumann's control of the company and the losses incurred by long-term commercial leasing of core business to short-term tenants have put public investors in the end with We Company's long-term prospects.